Mumbai: Indian Rupee remained strong against the US dollar amid weakness in Asian stock markets and intense capital inflows into the country.

The rupee bounced back sharply on yesterday wiping out early losses to end at new 9-1/2 year peak of 39.5750/5850 versus the dollar on healthy capital inflows and solid dollar out of the country, regardless of central bank intervention.

In unstable trading sesion at the interbank Foreign Exchange (Forex) market, the Indian currency restarted slightly lower at 39.58/60 per dollar from its last day’s closure of 39.5750/5850 a dollar and later was quoted 39.57/58 per dollar in late morning transactions

The market dealers said that there was little movement in forex market but the rupee activity was greatly influenced by continued and unique portfolio investments in equity markets.

Foreign Institutional Investors (FIIS) have poured in around USD 4 billion since September 19 after the US Federal Reserve slashed the prime interest rates.